Ofgem has decided not to apply penalties to distribution network operators (DNOs) over perceived service failures within their grid connections operations.
The regulator consulted on the issue in August, highlighting concerns from customers that suggested DNOs were not always helpful, did not have a single point of contact and in some cases took longer to provide a quote than allowed under Ofgem’s rules.
Under the current price control structure, DNOs can earn an incentive if they make continuous improvements or outperform in certain business areas. Connections is one area where they can earn a bonus. Ofgem had threatened to take some of that money away from the network operators, with penalties ranging from £0.6m to £4.6m for each DNO.
However, the regulator said it has “considered the position in the round [and] decided not to apply any penalties this year”, as “the DNOs met the minimum acceptable level under the assessment criteria”.
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